Retailers demand cash for cooking oil

RETAILERS are refusing to accept plastic money opting for cash instead as a method of payment for cooking oil amid delays in making foreign payments for the imported product.

BY TATIRA ZWINOIRA

In a snap survey conducted by NewsDay in the central business district, small shops were not allowing customers to use bank cards to purchase cooking oil.

Confederation of Zimbabwe Retailers president, Denford Mutashu said several customers called him to complain about this practice.

“I am currently engaging the cooking oil suppliers to find out if indeed there is that directive, as some few shops have put up notices,” he said.

Among the shops found to be demanding cash only for cooking oil was Mohammed Mussa Wholesalers, Metro Peech Bulawayo and some Choppies stores.

NewsDay found from the snap survey that the notices mentioned by Mutashu cited oil manufacturers demanding cash, as the reason behind asking customers to pay in cash when purchasing cooking oil.

Oil Expressers’ Association of Zimbabwe representative and Pure Drop cooking oil, chief executive officer, Sylvester Mangani denied the claims.

“There is no problem with the cooking oil sector and I think you should direct your questions to them (retailers). As long as they have our cooking oil, whatever they are doing with it, is something they can explain. If you go to OK or TM Pick N Pay they pay using the real time gross settlement (RTGS) system,” he said.

“There are some retailers, who pay us in cash, but generally they pay using RTGS. We do accept RTGS payments. We encourage retailers to pay in cash because we can repatriate cash, but there is no pressure on them to do that.”

Back in September, to avoid delays in foreign payments for crude oil, the Reserve Bank issued Exchange Control Circular No. 5 of 2016, where cash payments were to be made for crude oil, which was later ignored.

Mangani said the reason why they were not doing this anymore was due to a decline in sales, as a result of the on-going liquidity constraints.

Central bank governor, John Mangudya said, earlier this month, they had experienced challenges in making foreign payments for cooking oil, as it is a non-exporting commodity that demands a lot of cash.

Consumer Council of Zimbabwe executive director, Rosemary Siyachitema said they had not heard any complaints and were currently investigating which shops were doing this.

Cooking oil shortages forced the central bank, two weeks ago, to provide $5 million to the sector from the sale of gold to allow operators to pay for supplies of crude oil which is not produced locally.

17 Comments

  1. #Bringbackourflag

    It’s just now that i believe you are importing cooking oil, for all along i thought we are producing it locally, however, may local manufacturers bear with us so that we use plastic money to buy the product like any other product. There should be no sacred product in using plastic money.

  2. The shortages have started…cooking oil, diesel, power cuts etc. I don’t understand why Zimbabweans tolerate this BS.

  3. Signs of problems in our country. the next thing is empty shelves and rise of black market. why now ? The whole issue is around bond notes

  4. market is reacting to bond notes introduction surely this madness should stop – the madness of bond notes

  5. Bond notes have already begun t cause problems, before they are introduced. So you can imagine what will happen when they are actually introduced.

  6. zvino kana vakuramba plastic money ndopavachabvuma Bond??

  7. cooking oil and crude oil where do they meet? Editor is this article edited…gutter press material

    1. cooking oil is produced from imported crude oil not oil yemota. there is also crude oil for this

  8. How can a company say it’s in the business of refining oil imported from SA. That’s madness, sponsor soya production, and then express the same. That’s how it works, the world over!

  9. Crude oil? LOLEST

  10. We are a nation of liars, even Bimha was selling us a dummy by claiming that the Cooking Oil industry success was testament of his SI 64 of 2016. The truth is that Zimbabwe and even South Africa were always net importers of Crude Cooking oil mainly from South America, Argentina and Brazil. All these companies therefore are not producers per se, but refineries. In South Africa you will find the great number of these refiners in Durban.

  11. BOND!! kani! imiwe! tonyura zvakare, Inga takakurira mumasanctions aSmith izvi hatina kumbozviona izvi..

    Imaginary sanctions/Stemitized Corruption+ general maladministration and etc have finally brought Zimbabwe to its knees!!!

  12. Aren’t Pure Drop and Zimgold brand locally produced? Why not boycott such retailers like Mohammed Mussa et al and buy from OK, TM, Pick n’ Pay as well as Borne Marche as they sell the locally produced brands?

  13. An overrated country full of morons. Buy Zimbabwe, my foot! Its all a lie after all. Pathetic!

  14. No diesel since Sunday at Puma 7th/Samora Machel. We are in for trouble now.

    1. In Mutare diesel is going for around a $ per litre munaona vanhu venyu ikoko

  15. What a sad reading!!!

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